Kids apparel chain The Children's Place Retail Stores Inc on Wednesday admitted its second quarter loss would be worse than forecast due to sliding sales and was slashing prices in order to reduce unsold summer stock.

The company said in a statement it expects a loss of 35-40 cents a share and believes July same-store sales will fall around 15 per cent.

It added it anticipates earnings in the second half to be similar to last year’s levels based on current sales trends and lower back-to-school inventory.